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The As and Bs of Investing in China

In the old days, if you were "Shanghaied," it meant someone slipped a mickey in your drink at a sleazy waterfront bar, and your unconscious body was loaded onto a freighter bound for Macau.

These days, a safer way to get Shanghaied is to invest in a fund that specializes in the stocks of companies in mainland China. But keep in mind that funds investing in China are among the most volatile and risky of the emerging-market...